All Forum Posts by: Dimitrius Kiritsis

Hey Chris, great question! Many syndicators mean well regarding their projected returns, but a lack of experience will trump any good intentions during hard economic times. One thing to consider is the combined experience of the executive team. If you have 5 individuals on an "about us" page, and their combined experience is only 10 years, this could be problematic. On the contrary, if an exec board has 50-100 years+ of experience they likely have seen some adverse economic cycles and know how to pivot in such environments. Definitely something to consider while vetting out potential GP's.  

Congrats on 17 doors thus far! Partnering with groups with skill can often times lead to better results than one can achieve on their own when investing from a distance. Is the plan to remain an active investor? How hands on/off do you ultimately intend to be? 

Hello Daniel, 

Congratulations on your recent interest in multifamily investing, super exciting! 

A great rule of thumb is to underwrite 100 deals before picking one so that you can develop another sense and start to smell out the great opportunities when you find them. With today's higher interest rates, it's obviously much more difficult to pencil out deals. A great real estate metric to live by is the stabilized yield on cost which essentially takes into account the value added to your real estate once it is up and running/stabilized. Hope this helps! 

Hey Alice! I'd recommend investing in the Midwest due to its steady economic growth and relatively low unemployment rates. Additionally, the cost of living and conducting business is relatively lower in the midwest as well, all resulting in lower property prices and higher rental yields. 

Hello Josh, 

As you know, syndications are considered private placements and are monitored by the SEC. I'd recommend getting a great syndication attorney to keep you from wearing an orange jumpsuit :).

I've heard good things about Kim Lisa Taylor, just to name one. She has great podcasts and resources.

Best of luck!

Hey @Namal Burman, congrats on your RE investment success thus far! One thing to keep in the back of your head when considering a multifamily investment is the market in which you purchase it. The mid-west for example, has strong multifamily fundamentals e.g. supply and demand imbalance, steady growth, low cost of living, and relatively lower property prices. Hope this helps!  

Hello @Zane Cress, congrats on your success thus far. 4 SFH and 4 condos is a lot to manage with children and a W-2! You would be correct in saying that going bigger can lead to better economies of scale. However, I would still argue that it will likely result in being more "hands on" than you wish. I'd recommend researching top multifamily owner/operators who buy 200+ units and allow you to invest passively. This will free up your time to focus on your family and w2's, not the tenants, toilets, property managers, etc.

Many LP's become skittish when they see that an acquisition is negatively leveraged. However if they invest with a GP that has a great track record in value-add deals, they will often find that the investment is quite lucrative if the GP's business plan is executed efficiently. 

The most important metric an investor should look at is the stabilized yield on cost vs going in cap rate which takes into account the increased or stabilized NOI.

Hey @Amanda Scheller, what did you ending up deciding on? Personally, I'm a fan of getting my equity to work as much as possible for me.

A good trick to achieve this is the return on equity calculation. It is your net cashflow divided by your net proceeds (minus realtor and other fees). 

Eg. 12,000 net cf per year / 250,000 = 4.8% ROE